HEICO Corporation’s HEI fourth-quarter fiscal 2024 earnings per share (EPS) of 99 cents beat the Zacks Consensus Estimate of 97 cents by 2.1%. The bottom line also improved 33.8% from the prior-year quarter’s 74 cents.

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For fiscal 2024, the company reported adjusted earnings of $3.67 per share, which indicates growth of 26.1% from $2.91 at the end of fiscal 2023.

HEI’s Total Sales

The company’s net sales increased 8.3% year over year to $1.01 billion. However, the figure missed the Zacks Consensus Estimate of $1.04 billion by 2.5%.

The year-over-year upside was driven by record operating results from the Flight Support Group segment as well as strong contributions from HEI’s fiscal 2023 and 2024 acquisitions.

For fiscal 2024, the company reported net sales of $3.86 billion, which indicates growth of 30% from $2.97 billion at the end of fiscal 2023.

HEICO’s Operational Update

HEICO’s cost of sales increased 8.4% year over year to $620 million.

The company’s selling, general and administrative expenses rose 0.01% to $175.3 million.

Interest expenses declined 18.5% to $35.4 million from $43.4 million in the prior-year quarter.

Segmental Performance

Flight Support Group: Net sales from this segment surged 15% year over year to $691.8 million. This rise was driven by strong organic growth of 12% and the positive impact of its fiscal 2023 and 2024 acquisitions.

The segment’s operating income soared 34.8% year over year to $154.5 million. This increase was due to solid net sales growth, decreased acquisition costs and an improved gross profit margin.

Electronic Technologies Group: The segment’s net sales decreased 1.8% to $336.2 million due to lower net sales of defense and electronics products.

The segment’s operating income declined 5.3% year over year to $81.8 million, due to a less favorable gross profit margin caused by the decreased net sales of defense and electronic products.

HEI’s Financial Details

As of Oct. 31, 2024, HEI’s cash and cash equivalents totaled $162.1 million compared with $171 million as of Oct. 31, 2023.

Cash flow provided by operating activities was $672.4 million during fiscal 2024, reflecting a 49.8% rise from the prior-year period’s level.

HEICO reported a long-term debt (net of current maturities) of $2.23 billion as of Oct. 31, 2024, down from $2.46 billion as of Oct. 31, 2023.

HEICO’s Zacks Rank

HEICO currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Defense Releases

Hexcel Corporation HXL reported third-quarter adjusted earnings of 47 cents per share, which improved 23.7% from the year-ago quarter’s figure of 38 cents. The bottom line also surpassed the Zacks Consensus Estimate by 2.2%.

Net sales totaled $456.5 million, which beat the consensus estimate of $456.2 million by 0.1%. The top line also witnessed an improvement of 8.8% from the year-ago quarter’s figure of $419.5 million.

RTX Corporation RTX reported third-quarter 2024 adjusted EPS of $1.45, which surpassed the Zacks Consensus Estimate of $1.33 by 9%. The bottom line also improved 16% from the year-ago quarter’s level of $1.25.

RTX’s sales totaled $20.09 billion, which surpassed the consensus estimate of $19.91 billion by 0.9%. The top line also surged 49.2% from $13.46 billion recorded in the third quarter of 2023.

Lockheed Martin Corporation LMT reported third-quarter adjusted earnings of $6.84 per share, which beat the Zacks Consensus Estimate of $6.47 by 5.7%. The bottom line also rose 1% from the year-ago quarter's figure of $6.77.

Net sales totaled $17.1 billion, which missed the consensus estimate of $17.28 billion by 1%. The top line, however, increased 1.3% from $16.88 billion reported in the year-ago quarter.

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